Flat day @ close in markets......

Markets stayed in a narrow range & closed mostly unchanged.....volume stayed below average.

S&P 500 broke above to 1153.41 higher than previous high of 1150.45 but closed @ 1149.99

Internals were weak in Nasdaq where declining stocks held the lead......

VIX was Down 2.66% BUT VXX Down only .96%......VXX has "outperformed" VIX two days in a row....which negates some of the conclusions being posted on VXX MB.....little knowledge is always dangerous to financial health of followers of poorly written research.....

VXX started trading from Jan 2009 based on short term futures contract of VIX......based on past factual data factoring all expenses & daily rebalancing of VXX...it was Down 75% while VIX without daily rebalancing & expenses it was Down 55%......so pretty close tracking once you figure out some expenses & rebalancing......all data reflects stat from Jan 09 to Feb 10... 14 months of tracking.....

VIX is based on Spot prices while VXX is based on near months futures prices of VIX.....there is an ongoing difference of 5% to 10% higher prices for futures.....generally speaking.....

I will keep VXX till market finds footing & will report daily on its performance compared to VIX...the best way to learn is to track daily & see how it really works......

By noon Saturday ..I will list "sell candidates" based on RSI......

BLOG does NOT give buy or sell.

Saleem